Correlation Between Gabelli Global and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Bancroft Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gabelli Global and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Small and Bancroft Fund Limited, you can compare the effects of market volatilities on Gabelli Global and Bancroft Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gabelli Global with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Bancroft Fund.
Diversification Opportunities for Gabelli Global and Bancroft Fund
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gabelli and Bancroft is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Bancroft Fund Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund Limited and Gabelli Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gabelli Global Small are associated (or correlated) with Bancroft Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancroft Fund Limited has no effect on the direction of Gabelli Global i.e., Gabelli Global and Bancroft Fund go up and down completely randomly.
Pair Corralation between Gabelli Global and Bancroft Fund
Considering the 90-day investment horizon Gabelli Global is expected to generate 1.47 times less return on investment than Bancroft Fund. But when comparing it to its historical volatility, Gabelli Global Small is 1.11 times less risky than Bancroft Fund. It trades about 0.02 of its potential returns per unit of risk. Bancroft Fund Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,598 in Bancroft Fund Limited on November 2, 2024 and sell it today you would earn a total of 234.00 from holding Bancroft Fund Limited or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Small vs. Bancroft Fund Limited
Performance |
| Timeline |
| Gabelli Global Small |
| Bancroft Fund Limited |
Gabelli Global and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Bancroft Fund
The main advantage of trading using opposite Gabelli Global and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Bancroft Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bancroft Fund will offset losses from the drop in Bancroft Fund's long position.| Gabelli Global vs. MFS Investment Grade | Gabelli Global vs. Eaton Vance National | Gabelli Global vs. Nuveen California Select | Gabelli Global vs. Federated Premier Municipal |
| Bancroft Fund vs. GAMCO Natural Resources | Bancroft Fund vs. RiverNorth Flexible Municipalome | Bancroft Fund vs. Brandywineglobal Globalome Opportunities | Bancroft Fund vs. Ameritrans Capital Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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